Employers fight to hold wages to $8.50 rise

James Massola, Clay Lucas

Australia's largest employer group has called for a minimum wage rise of just $8.50 a week, or 1.3 per cent – less than half the forecast rise in the cost of living of 2.7 per cent.

But the ACTU wants a rise of $27 a week from $622.20 to $649.20, an increase of 3.9 per cent – triple the amount proposed by the Australian Chamber of Commerce and Industry (ACCI).

The ACCI submission to the Fair Work Commission's annual hearing on the minimum wage has been backed up by the Master Grocer's Association, which called for a 1.25 per cent rise, while on Thursday, the Australian Hotels Association and Restaurant and Catering Australia went further in calling for a wage freeze. The commission granted a self-described "modest" rise of 2.6 per cent last year.

This year's hearing is the first since the change of government and comes as Liberal MPs and business groups step up their campaign to rein in penalty rates, as the federal government launches a royal commission into union corruption and as the government prepares to launch a Productivity Commission inquiry into the Fair Work laws.

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In its submission, the ACCI states economic growth is below trend, labour market conditions are weak, job opportunities for the low paid are diminishing and that "there are heightened risks to growth that the minimum wage panel must take into consideration". Chief operating officer John Osborn said an unreasonable rise would result in job losses and fewer jobs.